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Overview

China Eximbank provides RMB 61 million concessional loan for District Development Fund (DDF) Equipment Project

Commitments (Constant USD, 2023)$17,301,451
Commitment Year•2001Country of Activity•ZimbabweDirect Recipient Country of Incorporation•ZimbabweSector•Other Social Infrastructure And ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 23, 2001
First repayment
Feb 22, 2006
Last repayment
Aug 19, 2021

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Government Agencies

  • Government of Zimbabwe

Loan desecription

China Eximbank provides RMB 61 million concessional loan for District Development Fund (DDF) Equipment Project

Grace period•5 yearsGrant element•46.672%Interest rate (t₀)•3%Interest type•Fixed Interest RateMaturity•20.5 years

Narrative

Full Description

Project narrative

On February 23, 2001, China Eximbank signed an RMB 61,660,000 ($8.6 million) government concessional loan (GCL) agreement with the Government of Zimbabwe for the District Development Fund (DDF) Equipment Project. However, the face value of the loan was subsequently revised to RMB 59,090,833.33. The loan carries the following borrowing terms: a 20 year maturity (final maturity date: 2021), a 5 year grace period, and a 3% interest rate. The project facilitated the acquisition of equipment for the development, maintenance and upgrading of road infrastructure. However, there are signs that the China Eximbank loan contracted by the Government of Zimbabwe for the DDF Equipment Project has underperformed financially. As of 2018, the borrower had accumulated principal and interest arrears and penalties worth $395,162.14. The loan’s amount outstanding (including principal, interest, and arrears) was $2,487,811.44 as of September 2021.

Staff comments

1. In the database of Chinese loan commitments that it released in July 2020, SAIS-CARI identifies the maturity of this loan as 20 years. AidData records the maturity (20 years) that is reported Zimbabwe’s Ministry of Finance and Economic Development in its 2019 Blue Book Estimates of Revenue and Expenditure.